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Does anybody know a website where you can lookup the taxes that need to be paid by non-resident aliens (from different countries) on items such as capital gains, dividends, and interst income?

Want to make sure I am paying the right taxes both in the US as well as on stocks in the UK and EU.

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Dear Gambiteer,

My real expertise is US taxes.

In general, capital gains are not taxed by the US on non-resident aliens. However, capital gain distributions are taxed as dividends. Also, capital gains on sales of US real estate, including REITs, are also taxable.

Dividends are taxed through withholding at 30%(default)or a reduced treaty rate if one applies. If you are a legal resident of a country that has a tax treaty with US, you probably qualify for 15%. For more details on treaty rates, just ask.

Interest payments are tax-free if paid on bank acount deposits, post-1986 issue US treasury bills, notes, and bonds, and post-1986 issue corporate bonds. Other interest payments are typically taxed through withholding at the same rate as dividends.

Non-resident alien portfolio income(from stocks, bonds, bank accounts) from the UK is easier to deal with. They have no withholding or tax. No US tax.

Most, if not all of the other countries in the EU have withholding taxe on stock dividends. I do not know the details except for US residents. Again no US tax on non-US source income.

Bill Patch
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Hi Gambiteer

you should read IRS publication 515,

it describes what you have to pay in the US as a non resident alien, it also have a list of tax treaties in the back.

you should also fill in a W8-BEN form and send it to your broker (normally they will ask you to fill it in when you open an account)

instructions for W8-BEN

The form itself

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Thanks to Bill and Erik...

Tax on dividends is depressing actually, the UK seems is a pleasant anomaly compared to the US and the EU!

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